Recent investigations have revealed that two of Italy's most prominent luxury fashion houses, Dior and Giorgio Armani, pay a surprisingly low amount to produce handbags that retail for thousands of dollars. Documents examined by the authorities show that Dior paid a supplier only $57 to make bags that sell for about $2,780. So, what explains this stupendous price markup? Are you paying for quality handbags or are you paying for the brand? Palki Sharma answers the questions.